Minimal 3G impact on operators

Fitch Ratings says it does not expect any substantial impact on the credit quality of Thailand’s mobile phone operators from the upcoming 3G licence auction. Fitch rates market leader Advanced Info Service BBB+ with a stable outlook and No.2 Total Access Communication (DTAC) BBB- with a stable outlook. Although the expected high licence fee – some reports suggest Bt10b – and investment in 3G services could increase net debt and financial leverage over the next two to three years, the companies’ solid cash flow and strong financial positions should help them withstand potential additional costs, Fitch said. (Bangkok Post)